Andrew Ronald Macmillan, 57, was released from Waikeria Prison this week and will be living in Hamilton for the foreseeable future.
The Parole Board, in a recent decision released to the Otago Daily Times, banned the killer from entering the South Island.
Macmillan was jailed for life in 1989 after murdering 17-year-old Jayne McLellan, whose body was found in the Kaikorai Stream.
He was paroled in 2020 but only lasted months before being convicted of possessing cannabis and a weapon,.
Macmillan has been behind bars since.
His last bid for release, in October, was shut down by the board because it was not satisfied the proposed accommodation could meet the man’s high needs.
At last month’s hearing, Macmillan’s progress was detailed for the panel.
The minimum-security inmate had been working outside the prison and provided a "very positive letter" regarding his progress.
"He has continued on with his one-on-one work with a psychologist dealing with the reasons why he was returned to prison, and that can continue on in the community," board chairman Sir Ron Young said.
Macmillan will appear before the Parole Board again in November for an update.
